“Inderpreet is a very quick learner with a positive attitude. He is hard working and a good team player.”
About
Accomplished professional with 19+ years of multi-market experience, skilled at expertly…
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Assembly Election result updates by Pvalue
Assembly Election result updates by Pvalue
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I am thrilled to announce two significant milestones for our startup, Chayan.AI—a Gen AI+ (Gen AI plus) solution that evaluates thousands of…
I am thrilled to announce two significant milestones for our startup, Chayan.AI—a Gen AI+ (Gen AI plus) solution that evaluates thousands of…
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In a world where consumers interact with brands across countless touchpoints—from social media and email to in-store visits and mobile…
In a world where consumers interact with brands across countless touchpoints—from social media and email to in-store visits and mobile…
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Experience
Education
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Symbiosis
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Publications
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Dynamic Pricing using Reinforcement Learning in Hospitality Industry
IEEE
Abstract:
Hotel room pricing is a very common use case in the hospitality industry. Such use cases take dynamic pricing strategies for setting optimum prices wherein prices are dynamically adjusted based on user engagement. However, it is challenging to design an approach that makes pricing dynamic with respect to complex market change. In this paper, we suggest a reinforcement learning based solution for this problem. The approach employs a Deep Q-Network (DQN) agent trained to…Abstract:
Hotel room pricing is a very common use case in the hospitality industry. Such use cases take dynamic pricing strategies for setting optimum prices wherein prices are dynamically adjusted based on user engagement. However, it is challenging to design an approach that makes pricing dynamic with respect to complex market change. In this paper, we suggest a reinforcement learning based solution for this problem. The approach employs a Deep Q-Network (DQN) agent trained to recommend/suggest optimum pricing strategies which maximizes the total profits for a day. In addition, the pricing strategy is optimized in such a way that empty rooms remain minimal. A real-life hotel-bookings data set is being used for testing this approach. The data is aggregated and preprocessed before being used for the task. The pricing strategy is influenced by the hotel-demand, type of rooms, number of nights and other variables. The hotel-demand is derived from a Random-forest model trained on the processed data to simulate original demand distribution of processed data. Using the DQN based dynamic pricing strategy, a potential 15–20 percentage higher reward(profits) were obtained compared to fixed pricing, and rule-based pricing strategy. At the same time the empty rooms left were significantly lower for the DQN based approach.
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